Question

Differentiate between absolute increased in population with the animal growth of population.

Answer 1

The difference is that an absolute rate just grows linearly, whereas a relative growth rate grows exponentially. So as the table below shows with $1,000 and an absolute growth rate of $100 per annum, after one year I’d have $1,100, after 2 years $1,200, after 3 years $1,300, and so on. Whereas with a relative growth rate of 10% after 1 year I’d have $1,100, after 2 years I’d have $1,210, after 3 years I’d have $1,331, and so on.